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CALICO FUDGEMAKING BROCHURE

Calico's in store fudgemaking programme

Calico's in store fudgemaking programme

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Calico Cottage<br />

FUDGE<br />

PROGRAMME<br />

www.calicocottage.co.uk/business<br />

01353 741661


WHO ARE<br />

<strong>CALICO</strong><br />

COTTAGE?<br />

MONEY<br />

MATTERS!<br />

In 1989 Nigel Baker<br />

started Calico Cottage in the UK, initially<br />

importing mixes and fudgemaking machines (known as a kettle) from its namesake in the USA but very quickly moving<br />

into manufacturing.<br />

Whilst links to our American colleagues remain very strong, 26 years on Calico is an established British manufacturing<br />

success story with year on year growth right through the recent recession. Every fudge kettle and every bag of fudge mix<br />

is made in our factory in Cambridgeshire and the company is still 100% owned by the Baker family. Three generations of<br />

the family work in the company to this day.<br />

Twenty five years prior to Calico starting in Europe, an American gentleman by the name of Leonard Wurzel had a chain<br />

of candy making stores within supermarkets in the USA. The supermarkets closed down leaving Leonard with leases to<br />

pay but no customers. His business was nearly crushed under the pressure of hundreds of thousands of dollars of debt.<br />

Rather than default on these debts, he started Calico Cottage, a company which has now grown to be the World's Largest<br />

Provider of fudgemaking ingredients and equipment. Leonard paid every dollar back and his company is now run by his<br />

sons from a state of the art facility on Long Island New York.<br />

Calico in the USA helped us get started in Europe and gave us great support at a time when UK banks would not. We still<br />

have close ties to Calico Cottage in America and swap knowledge and experiences on a daily basis. Whilst their flavours<br />

may seem a bit odd at times (they would say the same about ours!), our American Partners' ethics and principles are<br />

untouchable and we work to the same high standards here in Europe.<br />

Calico is<br />

NOT a<br />

Franchise<br />

Calico does not sell a franchise. In fact we can never<br />

understand why anyone would pay a price premium for an<br />

often relatively unknown confectionery franchise when, for<br />

a fifth of the price, you can start making better quality,<br />

beautiful looking, luxury fudge yourself and sell it under<br />

your own name with no license fees, no royalties and much<br />

higher margins. Don’t pay crazy money for something you<br />

can do better yourself!<br />

Even if you want to set up a sweet shop alongside your<br />

fudge, Calico can give you plenty of advice and assistance<br />

at no charge. We even stock 100 varieties of sweets.<br />

The fudge which you make with our programme sells for<br />

between £2.25/100g and £3.00/100g. It costs around<br />

50p/100g to make.<br />

If you are not VAT registered it’s worth noting that there’s<br />

no VAT on the mix and so 50p/100g is all you pay.<br />

With suitable promotions, you should achieve an average<br />

sale of close to £6.


WILL<br />

<strong>FUDGEMAKING</strong><br />

WORK FOR ME?<br />

The only real way to tell this is to talk over your plans<br />

with us. We will give you straight advice because the<br />

last thing we want to do is sell a kettle and never sell<br />

another case of mix to you. However, there are<br />

certain characteristics which successful fudge retailers<br />

all have in common:<br />

GREAT LOCATION – Good passing trade with the<br />

fudge display adjacent to the cash register.<br />

GREAT DISPLAY - People buy with their eyes. If your<br />

display is not attractive you will kill your profits dead.<br />

FRIENDLY SALES STAFF – Success comes from visitors<br />

enjoying their experience. Handing out small samples<br />

with a smile and a welcome will pay dividends.<br />

UPSELLING -You have an amazing display with fudge<br />

that simply cannot be bought anywhere else so make<br />

sure people are encouraged to buy more than one<br />

flavour!<br />

STAND OUT<br />

“Why would I want to make fudge<br />

when I can buy it in readymade?”<br />

When we started back in the 1980’s there was only<br />

one colour of fudge – brown. Since we introduced<br />

the country to some new looks and flavours there<br />

have been many attempts to imitate us with prepackaged<br />

finished product.<br />

We are inevitably flattered by this imitation but our<br />

whole ethos is trying to help our customers to make<br />

fudge that cannot be bought in a pack from every<br />

gift shop, tourist attraction or garden centre so that<br />

you are truly unique and memorable. We hope to<br />

give you something that makes you totally different<br />

from your competitors.<br />

You can buy peanut butter fudge anywhere but you<br />

can’t get a “Fully Loaded Fudge” oozing with toffee<br />

pieces, soft caramel, marshmallows, Oreos and<br />

peanut butter. That is what will make you different<br />

and that is what will enable you to sell far more<br />

fudge than any pre-packed option.<br />

Our experience suggests that you can sell between<br />

five and ten times the quantity of a pre-packed offer<br />

by making your own fudge.


Three hours per week of fudgemaking<br />

would equate to £30k of revenue or<br />

£20k of profit per year.<br />

In spite of this we still hear sites with great potential<br />

dismiss fudgemaking without a second glance.<br />

Enthusiasm is a key component for success. We want<br />

to work with retailers who care passionately and<br />

retailers who want to maximize their profits. So<br />

before you disregard the idea altogether, visit our<br />

website and have a look at our videos or play with<br />

our profit calculator.<br />

“IT SOUNDS LIKE HARD WORK”<br />

From four base mixes you can make 400 varieties of<br />

fudge. From start to finish it will take three hours to<br />

make 30kg of fudge in up to 12 different flavours<br />

with a retail value of £600. For much of those three<br />

hours you can go away and do something else whilst<br />

the fudge is left mixing. Does it still sound like hard<br />

work?!<br />

This table gives you an idea of how much money you<br />

might make from a given number of sales per day.<br />

There is obviously no such thing as an average<br />

customer but sales of £25k per annum would be about<br />

par for the course.<br />

If you imagine a well located fudge display in your<br />

store with a great looking range of flavours then just<br />

ask yourself, how many sales per day you might make?<br />

We have customers at both ends of the spectrum. Even<br />

with just ten purchases per day you would recover your<br />

investment in around six months.<br />

We have assumed an average sale of 250g and a price of £2.50/100g –<br />

these figures also allow for some typical promotions<br />

THE START-UP KIT<br />

We sell a start-up kit that enables you to make<br />

150kg of fudge with a retail value of about £3200<br />

plus VAT.<br />

The kettle costs us £3400 to make and we deliver<br />

it to you for £3500 plus VAT. With utensils,<br />

flavourings, start up packaging and fudge mix you<br />

will spend £4600 plus VAT. We also train you onsite<br />

for two days at our cost. The contents of the start<br />

up kit can be changed to suit your requirements.<br />

Needless to say, if you’re not selling fudge mix,<br />

we’re not making money. We both have a mutual<br />

interest in getting you the highest possible return<br />

on your investment.<br />

Equally, we will tell you<br />

upfront if we do not believe fudgemaking will<br />

work for you.<br />

At twenty sales per day it will take<br />

less than 90 days to recover your<br />

investment. We’ve even had people<br />

recover it in just three days.<br />

Fudge sells at typically £2.50/100g and<br />

costs you around 50p/100g to make<br />

including butter, flavourings and<br />

delivery charges of about 2.5p/100g.<br />

At a retail price of £2.50/100g you will<br />

make £1.58/100g profit after VAT*.<br />

Adding additional ingredients such as<br />

nuts, dried fruit, marshmallows,<br />

meringue pieces and toffee pieces<br />

will change this price but not<br />

dramatically.<br />

*based on 2016 price data<br />

This table gives you an idea of how much money<br />

you might make from a given number of sales per<br />

day.<br />

There is obviously no such thing as an<br />

average customer but sales of £20k per annum<br />

would be about par for the course. It is easy for a<br />

supplier to make great forecasts but nobody knows<br />

your business better than you do.<br />

If you imagine a well located fudge display in your<br />

store with a great looking range of flavours then<br />

just ask yourself, how many sales per day you<br />

might make?<br />

We have customers at both ends of the spectrum.<br />

Even with just ten purchases per day you would<br />

recover your investment in around six months.<br />

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<strong>FUDGEMAKING</strong> IS<br />

QUICK, EASY AND<br />

PROFITABLE<br />

ALL MIXES ARE GLUTEN FREE AND<br />

SUITABLE FOR VEGETARIANS, WE<br />

ALSO HAVE A RANGE OF NATURAL<br />

COLOURS AND FLAVOURINGS<br />

WHAT IS THIS GOING TO<br />

COST ME?


WHAT WILL <strong>CALICO</strong> DO TO HELP?<br />

We’ve talked about your potential profits and what makes a retailer successful at selling fudge. However, before you decide<br />

to proceed we can send you our comprehensive set up guide and any additional materials you require. These documents<br />

coupled with our online videos, contain all of the information that you need to locate and design your display, calculate<br />

costs, develop signs and clarify any Health and Safety requirements. Deciding where best to position a fudge display and<br />

negotiating space is something which potential new customers have found tricky in the past so if this is the case, please<br />

don’t hesitate to call us and ask for us to visit your site as we would be delighted to discuss your plans and help you get<br />

started.<br />

WHAT HAPPENS NEXT?<br />

As soon as you’re ready to go with a great display in<br />

the right location, Calico’s efforts focus on getting you<br />

set up and trained correctly. We spend two days with<br />

you and your team; the first is spent making fudge<br />

and the second is spent retailing it. The first day is the<br />

easier day but the second is critical and has to be done<br />

with some live customers in your shop. Retraining is<br />

also available for those of you with a high turnover<br />

of staff. Once you are up and running, you can receive<br />

continued support from Calico with seasonal ideas<br />

and promotions so that your display never starts to<br />

look tired. There’s a flavour for every time of the year<br />

whether it’s colourful fruity flavours in the summer or<br />

suitably festive flavours and decoration in the later<br />

months. You’ll be amazed at the difference it makes.<br />

Never forget that fudge is an impulse purchase so the<br />

better it looks, the more tempting it becomes and the<br />

more likely people are to come back! This could help<br />

increase sales of your other lines and certainly<br />

increases average spend per head so make sure that<br />

your display is always looking fabulous!<br />

THE <strong>CALICO</strong> COTTAGE WEBSITE<br />

We have a comprehensive website designed to meet all of our<br />

customers’ needs and offer a variety of online videos which<br />

demonstrate everything covered in this brochure so please<br />

don’t hesitate to have a good browse. If you go ahead with the<br />

Calico Fudge Programme you will also receive a unique login<br />

to our Customer Only Trade Area. This gives you access to vast<br />

amounts of additional materials including kettle maintenance<br />

videos, a recipe database, contact details for individual Calico<br />

staff members, specialist training videos, and finally the ability<br />

to place your orders for fudge mix online.<br />

Visit www.calicocottage.co.uk/business or to enquire about<br />

a Trade Area login, email us on info@calicocottage.co.uk<br />

Finally, don’t forget, we rely on you selling fudge to make any<br />

money ourselves so if we can help you in any way, we are very<br />

motivated to do so!<br />

Calico Cottage<br />

Unit 2, Haddenham Business Park,<br />

Sutton Road, Haddenham, Cambridgeshire CB6 3PT<br />

www.facebook.com/calicocottageuk<br />

www.twitter.com/calicocottageuk<br />

Tel: 01353 741661 Email: info@calicocottage.co.uk Website: www.calicocottage.co.uk

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